Halliburton Company HAL recently announced an accord with Optime Subsea, a Norwegian pioneer in offshore technology and subsea solutions. Upon acquisition, Optime Subsea's revolutionary umbilical-less technology will integrate with Halliburton’s Testing and Subsea division, which will help both companies gainglobal marketaccess and further technological development.
Benefits of Optime Subsea’s Acquisition by HAL
Optime Subsea, the company that dates back to 2015, has shown exceptional growth from being a local Norwegian startup to becoming a global leader in subsea technology. The services in its portfolio include subsea intervention and well control, which help in the simplification of operations and risk reduction. With this acquisition, Optime Subsea’s revolutionary technology will provide numerous benefits in comparison to its traditional hydraulic umbilicals.
The agreement with HAL validates its journey from being a local operator to gaining access to the global markets and becoming a leader in subsea service providers. The company has a strong base in the Notodden and Kongsberg locations, anticipating significant growth post acquisition. The company also has a vision to continue its collaboration with the local community and the industry at large to proceed with its growth objectives.
Post acquisition, HAL expects advancement in its subsea oil and gas value chain and maximization of the value of its assets to provide modular, scalable and universal solutions to its customers.
HAL’s Earlier Collaboration With Optime
The strategic alliance formed between the two companies in 2021 has set the benchmark for Optime Subsea’s recent acquisition. In 2021, their partnership saw the successful commercialization of subsea interventions using Optime’s Remotely Operated Controls System. The deal highlights the importance of Norway as an innovation hub shaping the future of the oil and gas industry.
The transaction, expected to be sealed by early 2025, will materialize upon necessary approvals from the regulatory authorities and other customary closing conditions.
HAL’s Zacks Rank and Key Picks
Houston, TX-based Halliburton Company is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance and engineering and construction services to the energy, industrial and government sectors. Currently, HAL has a Zacks Rank #5 (Strong Sell).
Investors interested in the energysector might look at some better-ranked stocks like TechnipFMC plc FTI,KLX Energy Services Holdings, Inc. KLXE and Flotek Industries, Inc. FTK. While TechnipFMC currently sports a Zacks Rank #1 (Strong Buy), KLX Energy and Flotek Industries each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
London-based TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The Zacks Consensus Estimate for FTI’s 2024 earnings indicates 260% year-over-year growth.
KLX Energy Services Holdings Inc. provides oilfield services focused on the wells’ completion, intervention and production activities. KLXE’s expected EPS (earnings per share) growth rate for next year is 28.52%, which aligns favorably with the industry growth rate of 15.10%.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.
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